Correlation Between GRIFFIN MINING and Hercules Capital
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Hercules Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GRIFFIN MINING and Hercules Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRIFFIN MINING LTD and Hercules Capital, you can compare the effects of market volatilities on GRIFFIN MINING and Hercules Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GRIFFIN MINING with a short position of Hercules Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Hercules Capital.
Diversification Opportunities for GRIFFIN MINING and Hercules Capital
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and Hercules is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Hercules Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hercules Capital and GRIFFIN MINING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GRIFFIN MINING LTD are associated (or correlated) with Hercules Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hercules Capital has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Hercules Capital go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Hercules Capital
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Hercules Capital. In addition to that, GRIFFIN MINING is 1.52 times more volatile than Hercules Capital. It trades about -0.05 of its total potential returns per unit of risk. Hercules Capital is currently generating about 0.14 per unit of volatility. If you would invest 1,848 in Hercules Capital on October 15, 2024 and sell it today you would earn a total of 72.00 from holding Hercules Capital or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Hercules Capital
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Hercules Capital |
GRIFFIN MINING and Hercules Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Hercules Capital
The main advantage of trading using opposite GRIFFIN MINING and Hercules Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Hercules Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hercules Capital will offset losses from the drop in Hercules Capital's long position.| GRIFFIN MINING vs. GRUPO CARSO A1 | GRIFFIN MINING vs. GEELY AUTOMOBILE | GRIFFIN MINING vs. Harmony Gold Mining | GRIFFIN MINING vs. Cars Inc |
| Hercules Capital vs. Tokyu Construction Co | Hercules Capital vs. MidCap Financial Investment | Hercules Capital vs. FARM 51 GROUP | Hercules Capital vs. TITAN MACHINERY |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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